Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192122 
Year of Publication: 
1995
Series/Report no.: 
Discussion Papers No. 138
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper presents a framework for estimating non-Walrasian models with many markets based on the virtual price approach in Lee (1986). The paper discusses an open economy multi-market non-Walrasian model with many agents and government production. The modeling of the labor markets is built on the assumption that each combination of worker and firm is a separate micro labor market. The econometric specification in the paper assumes log-linear virtual prices. Despite the use of such a simple specification it is apparent that when there are a large number of markets, the computational burden of estimation becomes heavy due to the large number of possible rationing regimes. The model presented in the paper can be viewed as a basis for either doing econometric work within a multi-market representative agent framework or for developing methods for aggregating across micro markets.
Subjects: 
Econometric disequilibrium models
non-Walrasian equilibrium virtual prices.
JEL: 
C5
D5
Document Type: 
Working Paper
Document Version: 
Digitized Version

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